In the recent Morning Meeting livestream held by the CNBC Investing Club with Jim Cramer, several key moments were discussed. The stock market showed mixed performance, with Big Tech outperforming while energy stocks lagged. The positive news of U.S. lawmakers averting a government shutdown competed with a bond market selloff, leading to higher Treasury yields and weighing on stocks. Despite the market’s oversold condition, the CNBC Investing Club decided to add to their position in Coterra Energy.
Another significant event discussed was the completion of the spin-off of Danaher’s environmental-and-applied solutions segment, known as Veralto. Shareholders of Danaher received one share of VLTO for every three shares of DHR as part of the tax-free spinoff. The new Danaher is expected to be a faster-growing, higher-margin business with more recurring revenues, leading to a lowered price target of $250 a share. Veralto, on the other hand, has a price target of $90 a share and was added to the S&P.
Lastly, TD Cowen raised its price target on Eli Lilly, another holding of the CNBC Investing Club. Eli Lilly was praised for its above-average sales and earnings-per-share growth forecast throughout the decade. However, the firm expects the pharmaceutical giant to report a $2.3 billion in-process research and development (IPR&D) expense in the third quarter. Although this expense may create some confusion, it does not fundamentally affect the company. Any weakness resulting from confusion around the IPR&D expense is seen as a buying opportunity by the CNBC Investing Club.
In conclusion, the Morning Meeting livestream discussed the mixed performance of the stock market, Danaher’s spin-off of Veralto, and TD Cowen’s raised price target on Eli Lilly. Despite challenges such as the bond market selloff and confusion expected from Eli Lilly’s IPR&D expense, the CNBC Investing Club is confident in their investment decisions.